Wall St’s IBM and Yahoo see strong profits

City A.M. Reporter
IBM has raised its profit forecast, as the tech giant and online search provider Yahoo posted quarterly results ahead of Wall Street projections.

Some investors were disappointed that the company did not raise its full-year forecast by a wider margin.

“The concern is they didn’t really guide a whole lot higher than they had originally for the year, if you take into account the earnings surprise,” said Fort Pitt Capital Group senior analyst Kim Caughey Forrest.

The world’s largest technology services firm managed to beat expectations for the first-quarter, even though it does about 11 per cent of its business in crisis-stricken Japan.

Meanwhile, online search provider Yahoo also posted quarterly earnings above Wall Street targets, seeing its shares rise more than three per cent in after-hours trading.

Yahoo earned $223m (£137m) in net income, or 17 cents a share, in the three months ended 31 March compared with $310m, or 22 cents a share, in the year-ago period.